Audit 54739

Assistance Listing Number, Federal Agency, and Program Name 81.087, U.S. Department of Energy, Research and Development Cluster Federal Award Identification Number and Year DE EE0008507 Pass through Entity N/A Direct award Finding Type Significant deficiency Repeat Finding Yes 2021-001 Criteria In accordance with 45 CFR 75.305 2(b), for nonfederal entities other than states, payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass through entity and the disbursement by the nonfederal entity whether the payment is made by electronic funds transfers or issuance or redemption of checks, warrants, or payments by other means. In accordance with 45 CFR 75.305(3), when the reimbursement method is used, the federal awarding agency or pass through entity must make payment within 30 calendar days after receipt of billing, unless it is believed the request to be improper. Condition Controls in place did not minimize the time elapsing between the transfer of funds and disbursement to a GTI subrecipient. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable, as there are no questioned costs. Context In 1 out of 29 transactions sampled for testing, it took GTI greater than 30 calendar days to make payment to the subrecipient after receipt of billing. The days in excess amounted to 19 calendar days. GTI's subrecipient billings totaled 176 during 2022. Cause and Effect Controls in place did not result in GTI making payment within 30 calendar days to a subrecipient, after receipt of billing. It took GTI 49 days to pay the subrecipient. Recommendation We recommend that GTI review its procedures and controls to ensure disbursement of funds to its subrecipients is consistent with applicable laws and regulations.

Assistance Listing Number, Federal Agency, and Program Name 81.087, U.S. Department of Energy, Research and Development Cluster Federal Award Identification Number and Year DE EE0008507 Pass through Entity N/A Direct award Finding Type Significant deficiency Repeat Finding Yes 2021-001 Criteria In accordance with 45 CFR 75.305 2(b), for nonfederal entities other than states, payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass through entity and the disbursement by the nonfederal entity whether the payment is made by electronic funds transfers or issuance or redemption of checks, warrants, or payments by other means. In accordance with 45 CFR 75.305(3), when the reimbursement method is used, the federal awarding agency or pass through entity must make payment within 30 calendar days after receipt of billing, unless it is believed the request to be improper. Condition Controls in place did not minimize the time elapsing between the transfer of funds and disbursement to a GTI subrecipient. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable, as there are no questioned costs. Context In 1 out of 29 transactions sampled for testing, it took GTI greater than 30 calendar days to make payment to the subrecipient after receipt of billing. The days in excess amounted to 19 calendar days. GTI's subrecipient billings totaled 176 during 2022. Cause and Effect Controls in place did not result in GTI making payment within 30 calendar days to a subrecipient, after receipt of billing. It took GTI 49 days to pay the subrecipient. Recommendation We recommend that GTI review its procedures and controls to ensure disbursement of funds to its subrecipients is consistent with applicable laws and regulations.